AN ACT

1Amending Title 66 (Public Utilities) of the Pennsylvania
2Consolidated Statutes, further providing for duties of
3electric distribution companies.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Section 2807(f) of Title 66 of the Pennsylvania
7Consolidated Statutes is amended to read:

8§ 2807. Duties of electric distribution companies.

9* * *

10(f) Smart meter technology and time of use rates.--

11(1) [Within nine months after the effective date of this
12paragraph, electric] Electric distribution companies [shall] 
13may file a smart meter technology procurement and
14installation plan with the commission for approval. [The plan
15shall describe the smart meter technologies the electric
16distribution company proposes to install in accordance with
17paragraph (2).

18(2) Electric distribution companies shall furnish smart

1meter technology as follows:

2(i) Upon request from a customer that agrees to pay
3the cost of the smart meter at the time of the request.

4(ii) In new building construction.

5(iii) In accordance with a depreciation schedule not
6to exceed 15 years.]

7(3) Electric distribution companies shall, with customer
8consent, make available direct meter access and electronic
9access to customer meter data to third parties, including
10electric generation suppliers and providers of conservation
11and load management services.

12(4) In no event shall lost or decreased revenues by an
13electric distribution company due to reduced electricity
14consumption or shifting energy demand be considered any of
15the following:

16(i) A cost of smart meter technology recoverable
17under a reconcilable automatic adjustment clause under
18section 1307(b), except that decreased revenues and
19reduced energy consumption may be reflected in the
20revenue and sales data used to calculate rates in a
21distribution rate base rate proceeding filed under
22section 1308 (relating to voluntary changes in rates).

23(ii) A recoverable cost.

24(5) [By January 1, 2010, or at the end of the applicable
25generation rate cap period, whichever is later, a] A default
26service provider [shall] may submit to the commission one or
27more proposed time-of-use rates and real-time price plans.
28The commission shall approve or modify the time-of-use rates
29and real-time price plan within six months of submittal. The
30default service provider [shall] may offer the time-of-use

1rates and real-time price plan to all customers that have
2been provided with smart meter technology [under paragraph
3(2)(iii)]. Residential or commercial customers may elect to
4participate in time-of-use rates or real-time pricing. [The
5default service provider shall submit an annual report to the
6price programs and the efficacy of the programs in affecting
7energy demand and consumption and the effect on wholesale
8market prices.

9(6) The provisions of this subsection shall not apply to
10an electric distribution company with 100,000 or fewer
11customers.]

12(7) An electric distribution company may recover
13reasonable and prudent costs of providing smart meter
14technology [under paragraph (2)(ii) and (iii)], as determined
15by the commission[. This paragraph includes], including
16annual depreciation and capital costs over the life of the
17smart meter technology and the cost of any system upgrades
18that the electric distribution company may require to enable
19the use of the smart meter technology which are incurred
20after the effective date of this paragraph, less operating
21and capital cost savings realized by the electric
22distribution company from the installation and use of the
23smart meter technology. Smart meter technology shall be
24deemed to be a new service offered for the first time under
25section 2804(4)(vi). An electric distribution company may
26recover smart meter technology costs:

27(i) through base rates, including a deferral for
28future base rate recovery of current basis with carrying
29charge as determined by the commission[; or

30(ii) on a full and current basis through a

1reconcilable automatic adjustment clause under section
21307].

3* * *

4Section 2. This act shall take effect in 60 days.